4 Key Factors Why Ethereum Gas Fees Could Get Cheaper

Ethereum has the biggest gains on the daily chart for the main cryptocurrencies by market cap. At the time of writing, ETH is up 4.9% and trades at $2.328,58. With sideways movement in the weekly and 46.7% gains on the monthly chart.


More appreciation for ETH seems to be imminent. The network appears to be solving a “disadvantage” that has been leverage by its competitor to gain market share, high transaction fees. Data from EthGasStation indicates that a fast or standard transaction has a cost between 45 to 50 gwei.

As shown in the chart below, ETH’s gas fees are on a decline since April 20th. At that moment, this metric soared to an average of $37, their highest cost since February 2021. The trend appears to be reversing and the metric is close to its lowest point this year with an average cost of $10.22 per transaction.

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Co-founder of EthHub, Anthony Sassano, believes there are 4 main reasons for fees getting cheaper: the increase in the gas limit (block size) by 20%, a cooled down on the crypto market, implementation of second-layer solutions, and the adoption of Flashbots. The latter seems to be playing a major role.

As reported by NewsBTC, Flashbots is an organization that develops tools to reduce and improved defends Miner Extractable Value (MEV). They are the opposite of Priority Gas Auction (PGA) since Flashbots have a positive effect on reducing gas’ cost. The organization defends a “transparent” MEV ecosystem.

As reported by pseudonym developer “Stephane” there is close to 72.22% of Ethereum hashrate has onboarded to Flashbots and their tools. Miners used them to maximize their rewards. This metric has seen almost a 15% increase over the past two weeks.

Ethereum ETHUSD

The Future of Ethereum Gas Fees

The implementation of EIP-1559 with Hard Fork London has triggered a lot of discontent from the miner sector. Others have been dedicated to finding new ways to maximize their profits. As investor Spencer Noon said, Flashbots could become a backbone of ETH’s new fee market:

Been diving into the early #Flashbots data and *good lordy* $ETH miners just got gifted an incredible new source of revenue. ~5% extra revenue per block and that figure is only going to continue climbing. Few understand how profound an impact this has on $ETH’s security budget.

In addition, Ethereum investor Aftab Hossain believes EIP-1559 could reduce transaction biddings wars and stabilize fees costs. On top of this, some negative MEV strategies could become unprofitable to the benefit of Flashbots.

However, Hossain expects fees to be “scale back up” to current levels as Ethereum’s blockchain is used for more purposes. Therefore, increasing the demand, at least for the short term as sharding and new features on ETH2 are under development. Hossain said:

never mind the fact that L1 will still be used for a variety of tx’s because it has unique composable utility and value L2s may not be able to offer for some time.


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Besides Tesla: Other Great Companies That Adopted Bitcoin For Payments

With bitcoin’s continued increase in price and popularity, the asset’s mass adoption has skyrocketed in recent months. Apart from notable names purchasing BTC as a store of value, numerous large and small companies introduced bitcoin payments for their products as an alternative to fiat money.

Tesla Leads the Way

Bitcoin has had a wildly compelling year as institutional investors, banks, and fund managers continue to back up the cryptocurrency in any shape or form.

But way before it became a store of value for some, it was intended to serve as an electronic peer-to-peer cash system. That narrative has been questioned in time as many averted from using BTC as a form of payment.

However, the tides are turning, and many companies around the world have already enabled bitcoin payments.

Arguably the largest name in this growing list is Elon Musk’s Tesla. The electric vehicle giant purchased $1.5 billion in bitcoin in January this year but didn’t stop there. Just a few months down the road, Tesla announced it will start accepting BTC payments for its cars and, perhaps more importantly, it will store the funds in bitcoin instead of converting them into cash.

From Travel to Apple

The harsh consequences of COVID-19 were catastrophic for the touristic companies. Expedia, one of the leading online travel agencies in the world, though, joined the BTC bandwagon a long while ago.

Recently, the corporation announced a partnership with Coinbase via which it started allowing Bitcoin payments. Some experts believe the move would bring more flexibility to the company and help it guide it through the tough months to follow.

The tech giant Apple, in its turn, notified that users can spend bitcoin through Apple Pay. According to the company, BitPay cards can now be added to Apple Wallet. BitPay CEO Stephen Pair explained the innovation:

”We have thousands of BitPay Wallet app customers using the BitPay Card. Adding Apple Pay and soon Google and Samsung Pay makes it easy and convenient to use the BitPay Card in more places.”

Apple and Bitcoin

The List Continues

Another world-known company on this list is PayPal. The American institution noted that users in the country could buy, sell, and hold several cryptocurrencies directly through their accounts starting earlier this year.

Based in Tokyo, Japan, Rakuten is an electronic commerce and online retail company. It has remained a strong supporter of the potential of Bitcoin and cryptocurrency and was one of the first major corporations to accept it as a form of payment.

Coca-Cola announced a partnership with digital assets platform Centrapay to allow Bitcoin as a payment option. The popular beverage brand has around 2,000 vending machines that accept BTC.

The current COVID-19 pandemic also impacted positively some companies. Such an example is the American electronic commerce website Etsy. The firm is popular among customers interested in handmade or vintage items and craft supplies.

Although Etsy does not currently have an automated system in place to accept Bitcoin, vendors can specify the acceptance of the cryptocurrency in their advertisements to attract spenders.

Coca Cola

BTC Arrives at NBA and Premier League

As CryptoPotato recently reported, the adult website Pornhub announced it accepts Bitcoin and crypto for its premium membership. The digital asset replaced Visa and Mastercard, which stopped supporting Pornhub.

Another report informed that Luzboa, a Portugal-based electricity retailer moved to adopt Bitcoin as a form of payment. This innovation would allow Portuguese residents to pay their electricity bills using the primary cryptocurrency.

The Bitcoin mania reached even the Football Premier league of England. The professional team Southampton declared it will give BTC bonuses to its players instead of fiat money. ”The Saints” will have access to performance-based bonuses at the end of each season, and they will be paid in the digital asset.

Another sports team paying its players in Bitcoin is NBA giants Sacramento Kings, while The Dallas Mavericks will soon start accepting crypto to pay for season tickets.


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Ethereum DeFi Lending Platforms Print Record High of $25,000,000,000 in Total Value Locked

Market analytics toolkit Messari is reporting that the top Ethereum-based decentralized lending platforms have hit a massive milestone in the first quarter of 2021.

Messari revealed the news in a tweet this week, highlighting the progress made by decentralized finance (DeFi) platforms Aave, Compound (COMP) and MakerDAO (MKR).

“The lending sector went parabolic during the first quarter of 2021. DeFi’s most popular lending platforms reached $25 billion, the highest the sector has ever seen, including Aave, Compound, and MakerDAO.”

Source: Messari

The analytics platform also notes that the value of outstanding loans in the sector has also reached an all-time high with Compound, MakerDAO and Aave capturing the lion’s share of the market.


“The number of outstanding loans reached ATH of ~ $10 billion across Aave, Compound, and MakerDAO. Compound captured 53% of the market, MakerDAO 30% of market and Aave at 17% of market.“

Source: Messari

Ethereum blockchain monitor DeFi Pulse shows that the total value locked (TVL) in DeFi platforms across the blockchain currently stands at around $55 billion, down roughly 11% from an all-time high of about $62 billion locked on April 15th.

Although the total USD value locked in DeFi is down, the total number of ETH locked in Ethereum-based DeFi projects is hovering around all-time highs with approximately 10.74 million ETH deposited.

Of the other DeFi-related platforms built on Ethereum, decentralized exchange (DEX) Uniswap (UNI) holds nearly $6 billion locked, Curve Finance (CRV) has $5.32 billion and SushiSwap (DEX) $3.87 billion, all according to DeFi Pulse.

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Bitcoin dominance teeters at 50% as ETH, altcoins gain traction

Bitcoin (BTC) dominance briefly fell below 50% last week for the first time since January 2018, sending a strong signal that more speculative bets on altcoins was on the rise.

The Bitcoin dominance index, which measures BTC’s market capitalization relative to the broader cryptocurrency market, reached a low of 49.35% on Thursday, according to CoinMarketCap. At the beginning of 2021, BTC dominance was 70.68%.

Ethereum (ETH), meanwhile, accounted for nearly 15% of the overall market at its peak on Thursday. ETH dominance is up nearly 4 percentage points since the start of 2021.

ETH has outperformed BTC over the past seven days, charting an impressive 9.5% return. The second-largest cryptocurrency by market cap is down 10% from its previous all-time high whereas Bitcoin has corrected over 20%.

Binance Coin (BNB) has also seen its share of the overall market grow steadily this year, from 0.71% on January 1 to 4.17% on April 25. BNB is being supported by several fundamental factors, including growing adoption of the Binance platform and a coordinated burn of $600 million worth of tokens in the first quarter.

Meanwhile, cryptocurrencies outside the top ten have seen their share of the overall market inflate from less than 11% to over 18% since January 1.

Despite registering multiple record highs this year, Bitcoin’s dominance relative to altcoins has declined sharply. Source: CoinMarketCap

Commenting on the market shuffle, Meltem Demirors, the head of crypto investment manager CoinShares, said she is “seeing a lot of folks chasing returns by moving further out on the risk spectrum.”

Demirors also observed that 94 cryptocurrencies now have a market capitalization of $1 billion or more. At the time of writing, that figure had fallen to 87, according to CoinMarketCap. An additional seven projects were valued at $900 million or more.

Analysts are divided about the pace and timing of the so-called alt season, a period of the market cycle where many altcoins surge against the dollar and Bitcoin. Ben Lilly, co-founder and analyst at Jarvis Labs, told Cointelegraph last week that he doesn’t believe now is the best time to reallocate from BTC to altcoins from a risk-adjusted perspective.

Meanwhile, an analysis from Filbfilb, co-founder of the Decentrader trading suite, concluded that we are now approaching the major boom period for altcoins.

The current market cap for altcoins is $937 million.